The consulting company said in a statement that “as part of… refinancing discussions Deloitte has been appointed by Mouchel’s lending banks with the agreement of the company to perform a limited-scope review”.

Mouchel added that it expects “the refinancing to be completed by the time of its interim results expected in March 2011 and its banks remain supportive”.

The statement came after The Daily Telegraph revealed that Mouchel’s consortium of lending banks – Barclays, Royal Bank of Scotland and Lloyds – had hired Deloitte, the accountants, triggering worries about the company’s financial position.

The move by the lenders came after a string of profit warnings from Mouchel and the collapse of Connaught and ROK, companies that were also dependent on government contracts and hit by cuts to public sector spending.

Mouchel has around £180m in bank debt and bank facilities but is currently in talks with its banks about a refinancing.

Deloitte will carry out a “targeted” rather than “full” review ahead of Mouchel’s refinancing. The review will focus on how the severe drop in the company’s government contracts – on which it relied – will affect future cash flow.

David Tilston, finance director at Mouchel, is understood to be “very confident” that the company will complete its refinancing by its interim results in March 2011.